© 2011 Pearson Education, Inc. H4/12/12 Distribution of Services (Ch – pp )

© 2011 Pearson Education, Inc. I. Central Place Theory –proposed by Walter Christaller (Ger.) in 1930s –developed further by August Losch (Ger.) & Brian Berry (U.S.) in 1950s central place is market center each has a market area (or hinterland) –the area surrounding a service from which customers come –similar to nodal theory –usually use hexagons »171 functional regions in U.S. (Doxiadis & Berry)

© 2011 Pearson Education, Inc. Central Place Theory Figure 12-17

© 2011 Pearson Education, Inc. “Daily Urban Systems” Figure 12-16

© 2011 Pearson Education, Inc. I. Central Place Theory –Size of a market area depends on 2 factors –1. Range - maximum distance people will travel for service –short distance for everyday items –longer distance for specialty items often determined in time rather than distance often irregular shapes due to traveling time –2. Threshold - minimum # of people needed to support service must count potential customers product determines how many are counted –differences b/w specialty & everyday items –specific features based on age, ethnicity, gender, income, etc.

© 2011 Pearson Education, Inc. Market Areas, Range, and Threshold for Kroger Supermarkets Figure 12-18

© 2011 Pearson Education, Inc. II. Market-Area Analysis –A. Profitability of a Location Compute the range Compute the threshold Draw the market area –B. Optimal Location within a Market minimize distance to service for largest # of people –Best location in a linear settlement »gravity model - optimal location related to # of people in area & inversely related to distance one must travel »must factor in apartment buildings –Best location in a nonlinear settlement »must try several options and run numbers

© 2011 Pearson Education, Inc. Optimal Location for a Pizza-Delivery Service - Linear Settlement Figure 12-20

© 2011 Pearson Education, Inc. III. Hierarchy of Services and Settlements –Overview larger settlements provide more services - why? will only travel far for specialty items & or great sales –A. Nesting Market areas in MDCs = a series of hexagons of various sizes –variations based on different market sizes –Christaller noted regular patterns –Berry found similar patterns in U.S. Midwest scale of services produces separate ranges, thresholds

© 2011 Pearson Education, Inc. Central Place Theory Figure 12-21

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© 2011 Pearson Education, Inc. III. Hierarchy of Services and Settlements –B. Rank-size Distribution of Settlements 1. rank-size rule - each city is smaller than largest by degrees (nth largest is 1/n pop. of rank-size city) –ex: L.A. 1/2 size of NYC, Chi. 1/3 size of NYC, etc. rank size often relates to more even distribution of wealth and is more common in MDCs 2. primate city rule - no regular pattern, largest city is more than 2x bigger than 2nd largest city –ex: Denmark, U.K., Romania often occurs in LDCs w/ extremely large cities w/ services separated from rural areas & smaller cities

© 2011 Pearson Education, Inc. Rank-Size Distribution in the United States and Indonesia Figure 12-23

© 2011 Pearson Education, Inc. III. Hierarchy of Services and Settlements –C. Periodic markets more common w/ lower end services often collection of services together will move around areas more common in urban LDCs or rural MDCs –sometimes related to specialty items »ex: flea markets, farmers’ market often follow local religious or cultural customs –ex: Muslim (rotate w/ rest on Friday), China (10 day lunar), Korea (15-day lunar), Africa (local ethnic rules)

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